Laid Off and Moving to Canada on PR

[H1B_Over]

Hi,

I was recently laid off and currently hold PR for Canada so I plan on moving to Canada. I have not lived in Canada in PR status since I only landed and returned to the US.

As part of my layoff, I will be paid 3-4 months severance. My questions are as under:

- Am I allowed to receive the payments in my US bank account since the severance will be paid over the 3-4 motnhs and transferred to a Canadian bank account without a second incurrence of tax?
- What would be the best way to structure this: Get paid in lumpsum and enter Canada Vs. get paid over the 3-4 month time period? (to avoid doubel tax and conform to Canadian rules)
- Is there a restriction to the amount one can enter Canada?(in case I take the lumpsum option). Would there be taxes levied on this amount?I know there is a requirement for $10K but not sure if there is a limit?


Any help would be appreciated?If there is someone who I can get answers on these issues with an hourly consultation, I would be open to that.

Thanks.

[dimple2001]

Hi,

I was recently laid off and currently hold PR for Canada so I plan on moving to Canada. I have not lived in Canada in PR status since I only landed and returned to the US.

As part of my layoff, I will be paid 3-4 months severance. My questions are as under:

- Am I allowed to receive the payments in my US bank account since the severance will be paid over the 3-4 motnhs and transferred to a Canadian bank account without a second incurrence of tax?
- What would be the best way to structure this: Get paid in lumpsum and enter Canada Vs. get paid over the 3-4 month time period? (to avoid doubel tax and conform to Canadian rules)
- Is there a restriction to the amount one can enter Canada?(in case I take the lumpsum option). Would there be taxes levied on this amount?I know there is a requirement for $10K but not sure if there is a limit?


Any help would be appreciated?If there is someone who I can get answers on these issues with an hourly consultation, I would be open to that.

Thanks.

Taxation is not simple. However, here is the short version. You owe taxes to Canada after you become a tax resident of Canada (I am not talking about Perm resident; they are 2 diff things). So, what this means is, yes, you can have bank deposits in the US, Europe and wherever you see fit. However, once you become a tax resident of Canada, any earnings from that point forward is taxable in Canada. Earnings are interest, dividens, capital gains, income, etc. You become a tax resident when you establish domicile...meaning an address of an apt, home, possess Driver's license, health card, etc etc.